I was reading about the fact that most small business owners have no exit strategy from their business.
What's your plan or do you plan to continue until you retire, injure yourself or drop dead ?
Is that approach feasible ?
Should we all be looking to make the business 'transferable' by selling to a 3rd party or passing on within the family?
Conventional wisdom suggests you should start planning your exit strategy the moment you start you business - ie its part of your business plan/strategy ....wow ;-(
Is this something that us 'oldies' only consider as we get older (bit like financial planning for retirement - note I did not say Pensions)..
Would like to hear what you are planning...
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An exit strategy should include the business as well as personal plan for survival.
In the event of failure, having a Plan B in mind, an exit strategy that mitigates business losses and a good idea of 'what-to-do-next' makes sense.
Planning in the event of retirement, injury or death, could involve a known variable such as insurance, but would also depend on your age, the extent of injury or disablement. how viable the business is at the time the life-changing (or terminating) event occurs. Much more difficult to plan, and like all business planning would need to be updated and revised regularly as business and personal circumstances change.
I went to a seminar on the subject last year as I am rapidly approaching retirement age.
I learned one or two things that were useful about tax efficiency in the way one sells a business and a few pitfalls to avoid, also that it can take a matter of years to sell and transfer a business. Like everything for me, it takes a while for things to sink in.